Auto Loan Refinance Calculator Usaa
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Reviewed by Calculator Editorial Team
Refinancing your auto loan can save you money by taking advantage of lower interest rates or better terms. This calculator helps you estimate your potential savings when refinancing through USAA.
How to Use This Calculator
Enter your current loan details and the new loan terms you're considering. The calculator will show you the estimated monthly payment and total interest saved over the life of the loan.
- Enter your current loan balance
- Enter your current interest rate
- Enter the loan term in months
- Enter the new interest rate you're considering
- Click "Calculate" to see your results
Formula Used
Monthly Payment Calculation
The monthly payment is calculated using the standard loan payment formula:
M = P [i(1 + i)n] / [(1 + i)n - 1]
Where:
- M = monthly payment
- P = principal loan amount
- i = monthly interest rate (annual rate divided by 12)
- n = number of payments (loan term in months)
Assumptions
- All calculations assume monthly compounding
- No additional fees or closing costs are included
- Results are estimates and may vary based on actual loan terms
Worked Example
Let's say you have a $20,000 auto loan with a 6.5% interest rate and a 60-month term. You're considering refinancing to a new loan with a 4.5% interest rate.
| Term | Current Rate | New Rate |
|---|---|---|
| Loan Amount | $20,000 | $20,000 |
| Interest Rate | 6.5% | 4.5% |
| Loan Term | 60 months | 60 months |
| Monthly Payment | $375.50 | $322.75 |
| Total Interest Paid | $1,530.00 | $975.00 |
| Total Savings | - | $555.00 |
In this example, refinancing to a lower interest rate would save you $555 over the life of the loan.
USAA Auto Loan Refinance Options
USAA offers several auto loan refinance options that may be worth considering:
- Lower Interest Rates: USAA often offers competitive rates for military members and their families
- Extended Terms: You may be able to extend your loan term to lower monthly payments
- Cash-Out Refinancing: If you have equity in your vehicle, you can use cash-out refinancing to pay off other debts
- Rate-and-Term Refinancing: Combine a lower rate with an extended term for maximum savings
Considerations
- Check your credit score before applying
- Compare rates from multiple lenders
- Be aware of any fees associated with refinancing
- Consider the total cost of the new loan, not just the interest rate